- Market sentiment is once more neutral
- 55% of pending orders in 1000-pip range are set to BUY gold
- Gold prices reach above 1,340 mark
- Federal Reserve caused a jump
The yellow metal's gains were extended on Friday, as the bullions price surged above the 1,340 mark. However, Dukascopy analysts have noticed a medium term resistance line on the hourly chart, which might slow down the rise of the commodity price.
The US Census Bureau revealed on Friday that the US building permits data did not meet expectations, showing the growth pace of only 1.30M units in February, following the downwardly revised 1.38M reading in the prior month.
The stronger-than-expected fall in the US homebuilding was caused by a plunge in the multi-family housing construction offsetting a rise in single-family projects for the second month in succession.
US Durable Goods Orders
The main event of the week has occurred, the Fed rate hike has caused the US Dollar to plummet due to the fact that Jerome Powell revealed additional information. Namely, there will be three rate hikes this year. Due to the fact that it was less than already priced in by the markets, the drop occurred.
Meanwhile, watch for the US Core Durable Goods orders being released at 12:30 GMT. The data release will be covered by the Dukascopy Research team during the Friday's research webinar, which will start at 12:00 GMT.
XAU/USD pushes towards 1,345.00
Gold was moving south during the first part of Thursday's trading session. It was fluctuating around the 1,330.00 mark which had previously provided a strong resistance level.
The yellow metal gained late in the evening when the Trump administration announced tariffs on Chinese imports. This resulted in a massive sell-off of the US Dollar. As a result, the pair was able to reach the 1,350.00 area by Friday morning.
A short-term ascending channel shows that the pair might still appreciate towards 1,350.00 prior to forming a minor correction south. This scenario, however, could occur even earlier, given that the pair is overbought. A possible fall should not exceed the 1,320.00 mark.
Meanwhile, the general tendency still remains upwards towards the senior channel located near 1,355.00.
Hourly Chart
The 55-day SMA played a slight role as the supporter of the monthly PP and the weekly R1 in the range from the 1,325 to 1,330 mark, where the bullion found support to book another jump.
Meanwhile, we have added the recently discovered medium term pattern to the daily chart. However, be aware that the recent surges where fundamental, and the resistance might be easily passed.
Daily Chart
Markets have moved into the neutral zone
SWFX market participants no longer have a collective opinion, as traders are neutral. Meanwhile, pending commands have become slightly bullish, as 55% of all set up orders were to buy.
OANDA traders are also neutral, as 52% of open positions were long. However, Saxo bank traders are going short in 53% of all cases.